I have been doing some work to understand the rules related to investments made in Opportunity Zones and have discovered that they offer some breathtaking advantages to long time-horizon investors. My full report is linked below the Executive Summary.

Executive Summary

  • Opportunity Zones are regulatorily-specified areas in which investments receive substantial tax benefits.
  • Current capital gains can be deferred for as long as 10 years and the original investment’s cost basis is grossed up by as much as 15%.
  • Capital gains generated by an investment in an Opportunity Fund are tax-free as long as the investment is held for 10 years.
  • Investors can generate a real negative tax rate by investing in successful Opportunity Funds. In non-jargon terms, the government is paying investors to invest well.

Read the full report, including examples.